Re:Finland is scrapping plans to extend its basic income pro...
by dragonwriter on Friday April 20, 2018 @09:19AM
(#16884483)
> Technically, it's a flat tax.
It's a flat tax on consumption, which is a regressive tax on income; when unspecified, progressive/flat/regressive in regard to taxation conventionally refers to relation to income.
> but it doesn't really matter since as long as the prebate value is large enough, the poor still come out ahead.
The size of the prebate (and the 23% rate) is part of the FairTax proposal (though a slighlty incoherent part, since it is defined in terms of income, not spending)βit is defined at the level that a taxpayer would pay 0 net FairTax with poverty level income (presumably, this assumes 100% spending at poverty level.)
It's a flat tax on consumption, which is a regressive tax on income; when unspecified, progressive/flat/regressive in regard to taxation conventionally refers to relation to income.
> but it doesn't really matter since as long as the prebate value is large enough, the poor still come out ahead.
The size of the prebate (and the 23% rate) is part of the FairTax proposal (though a slighlty incoherent part, since it is defined in terms of income, not spending)βit is defined at the level that a taxpayer would pay 0 net FairTax with poverty level income (presumably, this assumes 100% spending at poverty level.)